StealthGas, Inc. Q2 FY2024 earnings call

• Sold two smaller vessels and got delivery of two brand-new medium gas carriers, and sold one medium gas carrier owned through the joint venture.
• Active on chartering side, entered more period charters and extended contract coverage for 2025 to 55% of fleet days, contracting revenues over $220 million for subsequent periods (excluding joint venture vessels) with minimal spot exposure.
• Continued to produce record results with increased revenues and reduced costs; net income for second quarter was $25.8 million, a 146% increase YOY.
• Very active in debt reduction strategy, drew down on $70 million facility, prepaid $107 million in debt, and long-term debt reduced to below $100 million.
• Fleet employment: 85% of contracted days for 2024 and 55% for 2025 secured, all vessels fixed with minimal spot exposure; two vessels drydocked in Q2, five more small LPG vessels scheduled for drydock by year-end.
• Fleet geography: Majority (60%) of fleet trades in Europe, 3 vessels in Middle and Far East, 5 in U.S. and Caribbean, 5 in Africa; increasingly engaged in ammonia trades with two vessels transporting ammonia.

For the fully owned fleet, voyage revenues increased to $41.8 million (14% year-over-year) due to an 11% reduction in fleet days from vessel sales. Net income for the second quarter was a record $25.8 million, a 146% increase year-over-year, with earnings per share at $0.70 (159% increase). Regarding the joint venture investments, the book value of investments was $29.8 million as of June 30, a $10 million reduction from December 31, due to the sale of Eco Ethereal during the second quarter, which contributed $9.5 million to profits in the second quarter.

• Secured over $220 million in revenue up to 2027 excluding joint venture vessels.
• Expect activity to pick up in seasonally strong winter periods as demand for LPG for heating rises.
• Optimistic on longer-term due to factors like growth in LPG exports from U.S., demand in China and India, and healthy order book situation for core fleet of pressurized ships.

• Red Sea attacks by Houthis affecting Middle East exports to Europe, with U.S. exports replacing some; impacts trade patterns.
• Midsize order book pressure on Handy segment, which could put downward pressure on rates if not managed.
• Oversupply concern for medium gas carriers (MGCs) if ammonia market for green fuel doesn't materialize as expected, given increasing orders and high order book ratio.

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